What International Flavors & Fragrances Inc. told the SEC could break it.

IFF purchases natural gas, electricity, petroleum-based products and crop-related items at market prices, hedging only soy and natural gas; climate events affecting crop yields further pressure input costs.

“We purchase certain commodities, such as natural gas, electricity, petroleum-based products and certain crop related items. We generally purchase these commodities based upon market prices that are established with the vendor as part of the purchase process. In general, with the exception of soy and natural gas, we do not use commodity financial instruments to hedge commodity prices.”

IFF is subject to antitrust investigations in multiple countries and US/Canada class actions alleging antitrust violations by it and competitors (plus a Jan 2026 additional class action); enforcement could bring significant fines, penalties or business restrictions.

“As further described in our consolidated financial statements, we are currently subject to antitrust investigations in a number of countries and class action lawsuits in the U.S. and Canada alleging antitrust violations by us and certain of our competitors. Additional suits and investigations may follow, and outcomes are uncertain.”

IFF sources a wide range of raw materials (essential/vegetable oils, botanical extracts, animal products, organic and petroleum-based chemicals) and relies on a limited number of suppliers or regions for certain materials; some manufacturing/R&D sites are the sole location for certain products, amplifying disruption risk.

“Our products depend on a wide range of raw materials sourced globally, such as essential or vegetable oils, botanical extracts, animal products, organic and petroleum-based chemicals. For certain materials, we rely on a limited number of suppliers or regions, making us vulnerable to shortages, delays, and price volatility.”